Abstract: To improve the control quality of the nonlinear control process, a novel nonlinear dynamicincremental internal model control (DIMC) algorithm is presented based on a dynamic-incremental internal model (DIM) . The DIM is built according to the first order plant with delay, and the DMIC is designed based on the internal DIM and the principle of the traditional internal model control algorithm.After the stability analysis of the DIMC system, a highly nonlinear and time variant bio-reactor is chosen as the control model to examine the control performance of the DMIC. The simulation results show that DIMC is much superior to the traditional PID and the artifical neural network (ANN) advanced control algorithm in control performance and the ability of interference suppression, and is important for applications of control engineering.